Major trends in urbanization and urban environment

Shobhakar Dhakal Global urbanization since early 1900 has been unprecedented and Asia is the front runner

• World urban population: 3.2 billion (49% of world population of 6.5 billion in 2005, will be 50% by 2008?) • Asia hosts largest world urban population (Asia 1.6 billion, Europe 0.5, Africa 0.3, North America 0.3, Latin America, Caribbean and Oceania 0.4 ‐ in 2005) • , India, USA have largest urban population in 2005 as countries • Cities and Asia (2005): – 11 out of 20 mega‐cities (over 10 million) – 17 out of 30 cities of 5‐10 million – 184 out of 364 cities of 1‐5 million – 225 out of 455 cities of 0.5‐1 million

Source: United Nations, Department of Economic and Social Affairs, Population Division (2006). World Urbanization Prospects:The 2005 Revision. Working Paper No. ESA/P/WP/200. Asian cities are facing severe challenges already • High density settlements demand better planning and management which have proved challenging • Congestion: Bangkok looses 6% of its GDP due to congestion • Air pollution: Most of the Asian cities have PM10 levels higher than WHO/USEPA guideline value • Solid waste: Generation rates are increasing with rising income; management and disposal are becoming serious concerns • Waste water: Volume is getting bigger and bigger Annual Average Ambient Concentrations of

PM10 in selected Asian Cities (2005)

None of the large Asian cities meets the WHO guideline for PM10 3 Average concentration of PM10 is approx. 80 ug/m has changed little since 1995 Slide courtesy: Dr Gary Haq and Dr Dieter Schwela, SEI What went wrong‐ in general?

• Gross failure of urban planning • Urban growth without enough time, resources, institutions, and capacity to put infrastructure and system at place – Too much pressure from motorization at early stage of economic development • Lack of serious political will/commitment and poor institutional arrangements • More than policy/plan‐ implementation failure Further urbanization forces us to think innovatively • Urban population will grow twice as faster as compared to total population growth (1.78% vs. 0.95%‐ annual rate for 2005‐2030 projected) resulting 4.9 billion (about 60% of total population) by 2030 (out of 8.2 billion) • Almost all global population increase come from urban population in developing world • 1.8 billion urban population will be added in 2005‐2030 out of which 1.1 billion will be added in Asia alone

UN, 2005 update A new issue- climate change has emerged which cities can no longer ignore

62% 57%

53% 49.7%

50.3% 43% 47% 38% Kyoto Current Kyoto Protocol Protocol Enter into FCCC Adopted Force •Annex B countries growing slowly Kyoto •Non-Annex countries growing rapidly Largely China and India Reference •China largest emitter: passed USA in 2006 Year •India to soon overtake Russia to become third Percentage of Global Annual Emissions Percentage of

J. Gregg and G. Marland, 2008, personal communication Incremental energy‐related CO2 emissions by country and region, 2006‐2030

WEO, 2008 City primary energy consumption in the Reference Scenario

12,374 Mtoe 73%

7903 Mtoe 81% cumulative 67% increase in 2006‐ 2030 come from non‐OECD countries‐ mostly from Asia

% are cities’ share in global Source: WEO, 2008 Energy‐related CO2 emissions in cities by region in the Reference Scenario

30.8 Gt

19.8 Gt

89% of cumulative increase in 2006‐2030 comes from non‐OECD countries‐ mostly from US cities :4.5 Gt, 23% Asia EU cities :2.7 Gt, 14% WEO, 2008 China cities::4.8 Gt, 24% 71% 76% Urban’s contribution to energy related CO2 emissions of China

• Large volume: 4.8 Gt in 2006 – More than whole of Europe (4.06 Gt)

• Global importance: 24% of global urban CO2 emission from energy use

• Local importance: 85% of total energy related CO2 emissions of China

• Dominated by key largest cities: 35 key cities account for 18% of China population but consume 40% energy and emit 41% of China’s energy related CO2 emissions Source: Dhakal, 2008; WEO 2008 Varying energy‐economy pathways within China’s cities

280,000 Hohhot

Taiyuan High energy pathway: Largely on 240,000 middle and western China with energy intensive industries and climatically cooler 200,000 Urumqi

160,000 Low energy pathway: Cities in 120,000 eastern part of the country with strong presence of service industries, close to coast and warmer climate 80,000 Xian China

40,000 Chongquin Per Capita Energy Consumption in Consumption Person Energy Per MJ Capita Per

0 0 3,000 6,000 9,000 12,000 Per Capita Gross Regional Product in US$ List of 35 most important cities that are mentioned in national plan: Beijing, , , , Hohhot, , , , , Shanghai, Nanjing, , Ningbo, , Fuzhou, Xiamen, , , , , , , Guangzhou, , , , , , Guiyang, , Xi'an, , Xining, Yinchuan, and Urumqi. Source: Dhakal (2008) Per capita energy and CO2 of key Chinese cities are not necessarily smaller

3.0 14.0 2.7 12.6 12.0 2.5 10.9 2.2 10.0 9.0 2.0 1.9 8.0 1.5 6.0

1.0 3.7 0.8 4.0

0.5 2.0

Primary energy demand, in TOE/person in demand, energy Primary 0.0 0.0 Beijing Shanghai Tianjin Chongquin Beijing Shanghai Tianjin Chongquin CO2 emission from energy use, in Tons/person Per capita final energy consumption, 2006 Per capita CO2 emissions, 2006 Based on permanent resident population, source: Dhakal(2008) Year 2003 Tokyo Metropolis: 5.9 tons CO2/person (pop12.06 mn) for 2003 New York State: 10.9 tons CO2/person (pop 18.95 mn) for 2003 New York City: 7.1 tons/CO2 (pop 8.1 mn) for 2006 (PLANYC) Greater London: 6.95 tons CO2/person (pop 7.3 mn) for 2003 Bangkok City: 6 tons CO2/person (electricity and transport only, 2005) Source: TMG , PLANYC, BMA Therefore…….

• Asia is/will be leader in unprecedented global urbanization • Local impacts are/will be serious: urban environmental impacts‐ air, water, waste • Global impacts are/will be tremendous: Asia’s (urban) energy use and carbon trajectories are of serious concern globally • It forces us to think new way to address the problem: – How to address telescopic compression of a range of urban environmental problem in Asia which the West experienced in some kind of stages? – Cities have started to act for global concerns – How to streamline energy and carbon mitigation concerns into the urban development activities? Strategic needs

• Tackling “urban” in integrated and holistically in opposed to fragmented pieces here are there

• Demand dampening‐ energy, material • Better infrastructure supply‐ without rebound effects • Providing incentives for actions that entail co‐benefits (to global and local concerns) • Better institutional arrangements (within and across) with focus on “implementation” of policies • Creating committed and accountable political champions • Thank you Needs for reasonable infrastructure supply

Students return home in an overloaded “tempo” (three‐wheeler) after taking the SLC examinations (Grade 10 of school) from Haripur exam center in Sarlahi on 9th April 2007 (Nepal) Needs for demand management

Beijing © Shobhakar Dhakal • Asian development is at cross‐roads • How donor communities can help National definitions of “urban” in UN Urban population statistics

Criterion Countries Administrative 83 Economic 1 Population size 57 Urban characteris tic 4 Any combination 48 Entire population 6 No urban population 3 Unclear definition 1 No definition 25 Total 228

Source: Thomas Buettner, UN Population Division Regional Emission Pathways (1980-2005)

C emissions Wealth per capita Population

C Intensity

Developed Countries (-)

Developing Countries Least Developed Countries

Raupach et al 2007, PNAS World primary energy use

2006 (Mtoe) Total: 11,547

OECD : 5,536 Non‐OECD : 6,011

China :1,898 India : 566 • OECD is not expected to increase dramatically • Non‐OECD account for majority of increases

WEO, 2008 Energy‐related CO2 emissions result in human sustainability challenges

45 2006 GigaTons CO2 International Total: 27.89 marine bunkers 40 and aviation

Gigatonnes OECD : 12.79 Non‐OECD ‐ gas 35 Non‐OECD : 14.12 Non‐OECD ‐ oil 30 China : 5.65 Non‐OECD ‐ coal India : 1.25 OECD ‐ gas 25 OECD ‐ oil 20 OECD ‐ coal

15

10

5

0 1980 1990 2000 2010 2020 2030 Source: WEO 2008 The Reference Scenario: Per‐capita primary energy demand, 2030

WEO, 2008 In 2030, disparities in per‐capita energy consumption remain stark, ranging from 7 toe in Russia to 0.5 toe in sub‐Saharan Africa World energy‐related CO2 emissions in 2030 by scenario

40

35 Gigatonnes 30

25

20 World 15 World 10

5

0 Reference Scenario 550 Policy Scenario 450 Policy Scenario

OECD countries alone cannot put the world onto a 450‐ppm trajectory, even if they were to reduce their emissions to zero Regional distribution within world’s urban population

Shift in the geographical distribution of urban population

60.0% 53.7%

49.3% 50.0% 1950 1975 40.0% 37.9% 37.8% 2005 32.0% 30.0% 29.2% 2030

20.0% 16.7% 15.1% 15.0% 13.8% 13.0% 12.4% 11.9% 11.0% 11.1% 9.6% 8.5% 10.0% 7.0% 7.1% 4.5%

1.1% 1.0% 0.7% 0.6% 0.0% Regional share of world urban population AFRICA ASIA EUROPE LATIN NORTHERN OCEANIA AMERICA AMERICA AND THE CARIBBEAN

Source: United Nations, Department of Economic and Social Affairs, Population Division (2006). World Urbanization Prospects:The 2005 Revision. Working Paper No. ESA/P/WP/200. Cities by size

8000 World No of agglomeration in % of urban population in 2005 2005

7000 Urban > 10M 20 9.3% Urban 5M to 10M 30 6.5% Urban 1M to 5M 364 22.6% 6000 Urban 0.5M to 1M Urban < 0.5M Rural 455 10.1% 5000

51.5% (million) 4000 Population 3000 ‰ Mega‐cities are few and collectively makes small share 2000 ‰ Urban settlements with less than half‐million make over half of urban

1000 population

Source: United Nations, Department of Economic and Social Affairs, Population Division (2006). 0 World Urbanization Prospects: The 2005 Revision. Working Paper No. ESA/P/WP/200. 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 The China case

• China contributes significantly – 16.8 % of global urban population (UN 2007) – 16% of global primary energy demand, and – 20% of global energy‐related CO2 (WEO 2008) • China’s primary energy demand will increase further – By 2.2 times in 2005‐2030 to 3,819 Mtoe (WEO, 2007) • Urbanization in China will increase further – 60% (880 million) by 2030 from 41 % (545 million) in 2005. MGI (2008) projects is to one billion for 2030 • 90% of GDP by 2025 from urban economy (MGI, 2008) • Urban energy use will increase further – Per capita energy in cities are 1.8 times higher than national averages in 2006 (WEO, 2008) – Such gap will narrow in the future but rapid urbanization will ultimately lead to increasing urban energy use Urban primary energy use in China

2006 2030

City as City as Nuc lear Hydro Biomass & a % of a % of 0.8% 2.2% waste Other nation nation Natural gas 0.7% renew ables Mtoe al Mtoe al 2.8% 0.1% Coal 1 059 87% 2 206 90% Oil 271 77% 648 80% Oil Natural gas 40 81% 158 84% 19.0% Nuclear 12 84% 67 87%

Hydro 31 84% 76 87% Coal Biomass & waste 10 4% 37 16% 74.3% Other renewables 2 45% 27 67% Total 1 424 75% 3 220 83% Primary fuel share in urban energy use in 2006 Electricity 161 80% 495 83%

Reference Scenario WEO, 2008

For commercial energy, urban’s share is much higher i.e. 84% (Source: Dhakal (2008) Enormous influence of China’s largest and most important 35 cities

List of 35 most important cities that are mentioned in national plan: Beijing, Tianjin, Shijiazhuang, Taiyuan, Hohhot, Shenyang, Dalian, Changchun, Harbin, Shanghai, Nanjing, Hangzhou, Ningbo, Hefei, Fuzhou, Xiamen, Nanchang, Jinan, Qingdao, Zhengzhou, Wuhan, Changsha, Guangzhou, Shenzhen, Nanning, Haikou, Chongqing, Chengdu, Guiyang, Kunming, Xi'an, Lanzhou, Xining, Yinchuan, and Urumqi. Source: Dhakal (2008) Enormous influence of China’s largest and most important 35 cities

Source: Dhakal (2008) Four cities

Basic indicators of Beijing, Shanghai, Tianjin and Chongqing, 2006 City Beijing Shanghai Tianjin Chongqing Area, Sq Km 16,410 6,340 11,920 82,400 Resident population, million 15.81 18.15 10.75 2,808 Registered population, million 11.98 13.68 9.49 3,199 Urban share in resident population (%) 84% 89% 76% 47% Gross regional product, billion US$ 98.7 130.0 54.7 43.8 Total energy use, thousand TJ a 1,332 2,480 1,271 1,160 Total energy related CO2 emissions, 142.10 228.74 117.61 103.97 million tons a

Note the difference between resident and registered population

a Total energy means sum of TFC, distribution/transmission losses and conversion losses

Source: Dhakal (2008) Per capita CO2 emissions

20 Beijing Chongqing • Rapidly 5 times of 1985 Shanghai rising 16 Tianjin energy use and CO2 emissions 12 2.6 times of 1985

•Diverging trends 8 within cities

4 Per capita CO2 emissions, tons/registered population 0 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Based on permanent registered population Dhakal(2008) Common trends in CO2 contribution • Sectoral CO2 transition – Decreasing share of industry sector (except Tianjin) – Rising share of commercial and transports sectors – Largely unchanged share of residential sector • Fuel’s CO2 transition – Declining share of direct coal burning – Rising share of electricity and oil – Smaller role of natural gas then expected in Shanghai and Tianjin Carbon intensity of economy and per capita trends

4.00 Beijing 3.50 Tianjin (1985-2006) (1985-2006) 3.00

2.50

2.00 price) 1.50 Chonqing (1997-2006) 1.00 Shanghai (1985-2006) 0.50 CO2/GRP Kg/Yuan constant (1978 - 0.00 5.00 10.00 15.00 20.00 CO2/capita, tons/person • Failed to perform well, in general (ideally should move towards origin over time) • Large gain in carbon intensity of economy but this has slowed or even worsened in recent years • No way to reduce control per capita emission for now – but clearly great need to be dampened the growth and in carbon intensity terms Final observations

• The speed and size of urbanization keeps urban CO2 and Asia in the center‐stage • 67% of global energy is used in urban areas and urban areas are responsible for 71% of the energy related CO2 –this will increases to 73% and 76% respectively by 2030 • Asia, and in particular China and India is and will play bigger role in determining global urban energy and emissions in the future Final observations‐ China • Already about 75% of total energy are used in urban areas (85% of commercial energy) and such share will further increase to 83% despite narrowing urban to national per capita energy gaps • China’s 35 largest cities have and will have enormous and disproportionate influence to energy and carbon. Big cities are economic powerhouses and important. However, there are different pathways within too. • As seen from Beijing, Shanghai, Tianjin, and Chongqing analyses, a rapid energy transition taking place in cities‐ a low carbon path in evidently important to explore despite obvious difficulties • In Chinese cities policy interventions in energy system has synergies with the CO2 reduction (Clean energy, economic structure change, energy efficiency, strengthening of public and mass transportation system) • But that is not enough if current fuel structure persists and rapid technology deployment for coal such as CCS or IGCC is not used